Vietnam: Pilot scheme for short-term apartment rentals in Ho Chi Minh City

In brief

In February 2025, the People's Committee of Ho Chi Minh City (HCMC PC) approved Decision 26/2025/QÐ-UBND ("Decision 26"), which outlines the management and use of apartment buildings in the city. This includes regulations governing the operation of apartment buildings as tourist accommodation facilities, as well as the conditions for using apartments for such purposes.

According to Savills Vietnam, a subsidiary of the world's leading real estate service provider, Decision 26 "aims to protect residents' interests by providing clear guidelines on short-term and tourist rental activities (such as Airbnb) in residential and mixed-use apartment buildings." However, Decision 26 has also drawn significant reactions from investors and households that have been operating under the sharing economy model in recent years.

In response to the proposal by the Department of Construction of Ho Chi Minh City (HCMC DOC), HCMC PC has assigned HCMC DOC to coordinate with relevant authorities to develop a pilot scheme for short-term apartment rentals, aimed at encouraging the sharing economy within an appropriate legal framework.


Contents

Key takeaways

  • The pilot scheme for short-term rentals is proposed to be implemented in apartment buildings equipped with technical systems such as electricity, water, elevators, fire prevention and fighting, and waste treatment — all built in accordance with the design dossier approved by the competent authority.
  • To participate in the pilot, householders must meet a number of conditions. First, the lease arrangement must be approved by the apartment building's general meeting, along with the appropriate adjustment of the operation management fee. Apartment owners must also register the intended use with the local government, the management board and the building operator.
  • In addition, landlords are obliged to declare tenants' accommodation information to ensure compliance with regulations on tourism, residence, taxation, fire prevention and insurance. Rental activities must also ensure safety, security, order, environmental sanitation, and must not affect the interests of other residents.

In more detail

1. Vietnamese regulations on short-term residential rentals

  1. No usage of apartment units for purposes other than residential1
  • The defined terms "house" or "apartment unit," as governed under the Housing Law, refer to properties built for both residential and mixed-used purposes.2 The legal instruments interpreting the Housing Law also outline certain conditions for mixed-used purposes and refer to relevant regulations that govern mixed-use houses and construction works.3
  • To understand the different types of "residing," we refer to the Residence Law (applicable to Vietnamese citizens) and the Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam (applicable to foreigners who enter, leave, transit through and reside in Vietnam for purposes of investment, employment, travel, etc.). These laws define the terms "permanently residing," "temporarily residing" and "staying" ("lưu trú" in Vietnamese). Literally interpreted, these terms all imply residential purposes. "Staying" is specifically defined as "living at a location other than one's permanent or temporary residence for less than 30 days."4
  • That is to say, regardless of whether the rental is long- or short-term, apartment unit owners providing accommodation services should not be considered in violation of the prohibition under the Housing Law or Decision 26, as such accommodation services are, by definition, for residential purposes.
  1. Apartment units could be rented for tourist accommodation subject to certain conditions
  • Although the Civil Code and the Housing Law both grant owners of houses/apartment units the right to lease their properties, the Housing Law prohibits rentals for tourist accommodation5 (i.e., stays of less than 30 days), unless the owners meet certain conditions set out under the Tourism Law for business line 5510 (short-term rental).6
  • Based on our online search, it has been reported that the Ho Chi Minh City People's Committee issued Plan No. 2704 dated 18 April 2025 on developing the sharing economy in Ho Chi Minh City for the period 2025-2030. Under this plan, the Department of Science and Technology and related units are tasked with researching and developing a "Policy to promote the development of the sharing economy model in the field of tourist accommodation in Ho Chi Minh City." As long as the conditions prescribed under applicable law are met, owners of houses/apartment units are allowed to offer their properties for lease.

2. The pilot scheme is expected to resolve ongoing issues related to short-term apartment rental

Decision 26 merely consolidates regulations in various legal instruments and does not lift the prohibitions under the Housing Law with regard to short-term rentals or tourist accommodation services. The pilot scheme for short-term rentals proposed by HCMC DOC is intended for the following purposes:

  1. Assessing the effectiveness and impact of the short-term rental model
  2. Issuing guidance on the conditions for short-term/tourist accommodation rental in compliance with applicable laws
  3. Proposing that ministries and central agencies amend and supplement the provisions of Housing Law, the Tourism Law, and other relevant regulations

We note other provisions under Vietnam laws:

  • Law on Real Estate Business, which governs business line 6810 (long-term lease), waives certain business conditions, such as registration requirements, for small-scale leasing or owned property leasing.7
  • Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam refers to "lodging units," defined as "places where foreigners temporary reside within Vietnam's territory, including lodging units for tourists, guesthouses, housing areas for foreigners who work, study, or serve their internship in Vietnam, medical facilities, private houses, and other lodging units ("co s? luu trú" in Vietnamese) defined by law."8
  • The Residence Law refers to "other types of lodging," with no specific definition.

Should there be amendments to relevant laws, such changes could properly facilitate short-term leasing, such as for the following:

  1. To supplement/develop a clear definition of "lodging unit" and its scope of application
  2. To allow short-term leasing for residential purposes, hosted by the owner of a to-be-defined lodging unit
  3. To waive certain corporate/licensing requirements for leasing owned properties or "small-scale leasing"

3. What's next?

A list of mixed-used apartment buildings with units eligible for short-term/tourist accommodation rentals is expected to be announced by 15 September 2025.

For other apartment buildings (i.e., those not classified as mixed-use), the HCMC DOC will coordinate with the Ho Chi Minh City Department of Tourism to develop a proposal for exploitation solutions. These solutions aim to support the city's economic and tourism development while ensuring the security and safety of residents living in apartment buildings.


1 Art. 3.8(c), Housing Law.

2 Art. 2.1 and 2.2, Housing Law.

3 Art. 3.14, Circular 05/2024/TT-BXD, dated 31 July 2024 by the Ministry of Construction, promulgating regulations on management and use of apartment buildings.

4 Art. 2.6, Residence Law.

5 Art. 3.7, Housing Law.

6 Art. 49, Tourism Law.

7 Art. 9, Real Estate Business Law and Art. 7, Decree 96/2024/ND-CP, elaborating certain articles of Real Estate Law.

8 Art. 32, Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam.

Contact Information
Lan Phuong Nguyen
Partner at BakerMcKenzie
Ho Chi Minh City
Read my Bio
lanphuong.nguyen@bakermckenzie.com
Phuc Thuy Hien Nguyen
Senior Associate at BakerMcKenzie
Ho Chi Minh City
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thuyhien.nguyen@bakermckenzie.com

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